State government appoints chairman, members of Seventh Assam State Finance Commission
About State Finance Commission
The Finance Commission has been constituted by the Governor of Assam, on 23rd June, 1995, to review the financial position of the Local Bodies namely the Panchayats and Municipalities and put forward to the Government the recommendations relating to the distribution between the State and the Panchayats / Municipalities of the net proceeds of the taxes, duties, tolls and fees. Till now, six such commissions have completed their tenures and submitted their reports.
The State Finance Commission is established under Article 243-I and 243-Y of the Indian Constitution, which mandates the creation of such commissions in every state to review the financial position of local bodies and recommend the distribution of funds. In Assam, the SFC serves as an essential mechanism for ensuring that local bodies, such as rural Panchayats and urban Municipalities, receive adequate funds for their administrative and developmental activities.
Every five years, the Assam government constitutes a new State Finance Commission to evaluate the financial needs of local bodies and propose measures for effective financial management.
Functions of Assam Finance Commission
A number of vital tasks carried out by the State Finance Commission support the efficient operation of local government in the state, including:
- Evaluation of Financial Status: The commission evaluates local governments’ financial status, taking into account their capacity to generate income, spending trends, and financial requirements.
- Proposing Financial Devolution: One of the SFC’s main responsibilities is to suggest how money should be allocated between the state and municipal governments. This guarantees that local governments have enough funding to perform their duties efficiently, whether they are located in rural or urban areas.
- Grants and aid: For development projects, infrastructure, welfare initiatives, and other purposes, the Assam State Finance suggests particular grants and help to local organizations.
- Tax Distribution: To ensure a just distribution of funds, the commission assists in deciding how certain state taxes ought to be distributed to local governments.
- Enhancing Financial Management: To encourage financial accountability and transparency, the SFC counsels local organizations on how to enhance their financial management procedures, including budgeting, accounting, and auditing.
- Reform Suggestions: To guarantee improved resource management and governance, the Assam SFC recommends changes to local authorities’ financial structures and procedures.
Structure and Objectives of Assam Finance Commission
The governor appoints a chairman and a number of members to the State Finance Commission. Typically, the Chairman is an experienced professional with a solid background in public administration, finance, or economics. The commission’s members are professionals with backgrounds in resource management, local government, and public finance.
To guarantee that the financial resources are allocated in a fair and efficient way to fulfill the requirements of Assam’s many areas, the SFC’s structure is intended to bring together people with a range of experience.
Historical Overview of The State Finance Commission
Since its founding, the Assam State Finance has undergone several reconstitutions, each of which has addressed the changing requirements of local governance in the state:
| Number of State Finance Commission | Establishment Year/Term | Chairman |
| First Assam Finance Commission | 1995 | M.M. Taimur, IAS |
| Second Assam State Finance Commission | 2001-2006 | Rajiv Kr. Bora, IAS |
| Third Assam State Finance Commission | 2006-2011 | H.N. Das, IAS |
| Fourth Assam State Finance Commission | 2011-2016 | P.K. Bora, IAS |
| Fifth Assam State Finance Commission | 2016-2020 | P.K. Datta, IAS |
| Sixth Assam State Finance Commission | 2020-2025 | T.Y. Das, IAS |
| Seventh Assam State Finance Commission | 2025- | Lieutenant General Rana Pratap Kalita |
Importance of The State Finance Commission
In order to ensure fair resource distribution among Assamese local entities and to encourage fiscal decentralization, the State Finance Commission (SFC) is essential. The SFC gives local governments the authority to successfully handle the particular requirements of their communities by advocating for the transfer of funding from the state government to Panchayats and Municipalities. It is essential for strengthening local government, boosting financial management, and encouraging responsibility and openness with regard to public funds. The commission assists in allocating funds for sustainable development, healthcare, education, and infrastructure, with an emphasis on regional development, especially in neglected and flood-prone areas. Strengthening democratic government and guaranteeing balanced growth across the state depend heavily on the Assam SFC.